The demand for new premium products in China has pushed China’s dairy market for growth. As per the reports China’s dairy market is expected to grow significantly.
A report released on Wednesday by Sino-Dutch Dairy Development Center (SDDDC), an industry institution focusing on dairy production in China, stated that sales of cheese will see a compound annual growth rate of over 20 percent in the next five years, and the popularity of solid milk products such as powder will continue.
Rahul Colaco, president of Dutch dairy producer FrieslandCampina China and chairman of the SDDDC supervisory board said, “There is a big trend in the consumption of cheese in China, driven by the popularity of milk tea with cheese cap and Western-style pizzas and hamburgers.” He also added on the increasing trend of personalized products, “The elderly population or those who have medical needs and do sports are seeking more specialized products and functional food.”
Li Shengli, a professor at China Agricultural University shared his views on the expanding dairy market that it will bring opportunities for domestic dairy enterprises. He said,” Leading Chinese dairy firms Yili Group and Mengniu Dairy Co are expected to increase their sales each by 30 billion yuan (about 4.35 billion dollars) to 50 billion yuan in the next five years, and they are hopeful of joining the top five global dairy producers.”
As per the report forecast for next five years, the sales revenue of dairy products will see an annual growth of over 3 percent whereas the sales growth of yoghurt and organic milk will exceed 10 percent every year.